The relationship between equities and crypto is complex, but one thing is clear: as market conditions become increasingly uncertain, both assets can be impacted.
According to historical trends, major market crashes have occurred when the Consumer Price Index (CPI) rose above 3.8%. With CPI now approaching this threshold, investors are growing concerned about potential risk across broader markets.
In the context of crypto, this increased uncertainty could lead to a decline in liquidity flows, potentially affecting prices. However, recent on-chain data suggests that sentiment remains strong, with whales and long-term holders continuing to accumulate BTC.